Iraq’s plan to increase oil exports faces setback
An oil facility in Iraq. Photo: Al-Monitor
Baghdad (IraqiNews.com) – A source in the Iraqi oil sector said that his country’s attempt to increase oil exports through its ports on the Arabian Gulf suffered a setback due to the delay in developing pumping stations, according to Al-Arabiya news.
Iraq, which is the second largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC), aims to increase its oil exports to 3.45 instead of 3.3 million barrels per day.
The delay means that Iraq may not be able to export the additional 150 thousand barrels of oil per day in the third quarter of 2022, according to Reuters.
Although this is a relatively small amount, the setback comes at a time the world is witnessing a scarcity of oil supplies, a limited production surplus from other countries in the OPEC+ group, and limited opportunities to make up a significant shortage in supplies.
A representative of the Iraqi oil sector said that the reason for postponing the country’s original plan is the delay in obtaining the necessary approvals and completing tenders related to the developmental work.
The state-owned Basra Oil Company (BOC) was trying to establish new pumping stations in its ports on the Arabian Gulf to reach an export capacity of 3.45 million barrels per day in the second quarter of 2022.
BOC now expects to increase southern exports to 3.35 million barrels per day in August, and to 3.45 million barrels per day by September.
“I am not sure that Basra Oil Company will be able to meet the deadline due to the delay in completing the pumping stations project,” the source said.
The source explained that without completing the development works, Iraq’s oil exports may remain at about 3.3 million barrels per day.